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  • Nick Monjo

Essity Pays $414M For Leakproof Underwear

Essity, a public Swedish firm, just made two major deals in the leakproof underwear sector, acquiring Australia-based Modibodi as well as an 80% stake in Canada-based Knix Wear Inc. The two deals totaled $414 million.

Essity announced the Modibodi deal on July 7, stating the purchase price was “AUD 140m” (roughly $94 million at current exchange rates), and noting that that firm is “a leading leakproof apparel company in Australia, New Zealand and UK.” 2021 sales at Modibodi were about $38.2 million with “sales growth of 18%” and EBITDA of about $3.8 million, according to Essity.

Essity, a $11.5 billion firm (in 2021) which describes itself as a “global hygiene and health company,” announced the Knix deal on July 8, noting that it paid $320 million for its majority stake. 2021 sales at Knix were CAD 133.6m (about $102.9 million) with “sales growth of 97%” and EBITDA of CAD 13.8m (about $10.6 million), according to the statement. Founder Joanna Griffiths “will hold the remaining 20% share and will stay on as president of Knix.”

Founded in 2013, “Knix and their teen brand, Kt by Knix, offer a broad assortment of intimate apparel with leading positions in the growing leakproof apparel category. The company has strong presence in (the) U.S. and Canada and sells mainly direct-to-consumer through online channels, supplemented by six Knix retail stores.”

After the acquisitions are finalized, Essity claims it “will become the global market leader within leakproof apparel, the fastest growing product segment in intimate hygiene which includes feminine care and incontinence products.” It added that “leakproof apparel has an expected annual growth rate of more than 20% for the next five years,” and noted that “Essity is already active in the leakproof apparel market within feminine care with brands such as Libresse, Bodyform, Saba and TOM Organic, and within incontinence products with the TENA brand.” — ­­NM


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